SALT LAKE CITY — The owners of a downtown convenience store have been indicted on charges of fraud and laundering some $1.37 million in federally subsidized food benefits using food stamp cards.
On Wednesday, a federal grand jury returned a 20-count indictment against the owners of AJ's Kwik Mart, 268 S. Main. The group faces one count of conspiracy to commit wire fraud, 13 counts of Supplemental Nutrition Assistance Plan benefits fraud, and five counts of money laundering.
The charges carry penalties of up to 20 years in federal prison. No court date has been set.
According to charging documents, the group devised a scheme to redeem SNAP benefits for cash. Between December 2007 and May 2011, Kwik Mart workers would accept people's SNAP cards and process purchases, along with a nominal food or non-food purchase, such as cigarettes. Mart workers would give patrons 50 percent of the transactions in cash and pocket the remaining 50 percent.
Charged in the indictment were Muhammed Omar Mullahkhel, 59; and Ajmal Omar Mullahkhel, 24, both of West Valley City. Bilqis Shahnaz Mullahkhel, 26; Nargas Parwana Mullahkhel, 28; and Abdul Subur Mumtaz Mullahkhel, 45, all of Salt Lake City.
SNAP cards act like limited ATM cards, meant for the purchase of eligible food items and may not be redeemed for cash. The cards are subsidized through the U.S. Department of Agriculture Food and Nutrition Service and are administered locally through the Utah Department of Workforce Services.
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